Question

Analyze the streaming service HBO max based on the following

questions:
1) Explain which stage of the product life cycle is HBO max
currently in and why?
2) What kind of pricing strategy is HBO using it?

Answer 1

HBO Max is currently in the growth stage of the product life cycle and is using a penetration pricing strategy.

Step-by-step explanation:

HBO Max is currently in the growth stage of the product life cycle. The growth stage is characterized by a rapid increase in sales and market share as the product becomes more widely adopted. HBO Max launched in May 2020, and since then it has gained a significant number of subscribers. This indicates that it is still in the growth stage.

HBO Max is using a penetration pricing strategy. This means that it initially set a lower price to attract a large number of subscribers and gain market share. By offering a competitive price, HBO Max aims to encourage consumers to choose its streaming service over competitors.